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CDJ 2026 APHC 1560
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| Court : High Court of Andhra Pradesh |
| Case No : Criminal Petition No. 6608 of 2023 |
| Judges: THE HONOURABLE MRS. JUSTICE SUNITHA GANDHAM |
| Parties : Kannaya Govindraj Versus R. Veera Narayana Reddy & Another |
| Appearing Advocates : For the Petitioner: S.S. Bhatt, Advocate. For the Respondent: Public Prosecutor (AP), C Prakash Reddy, Advocate. |
| Date of Judgment : 18-08-2026 |
| Head Note :- |
Negotiable Instruments Act - Section 138 -
Case Referred:
Damodar S Prabhu v. Sayed Babalal ([(2010) 5 SCC 663])
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| Summary :- |
1. Statutes / Acts / Rules Mentioned:
- Section 138 of Negotiable Instruments Act
2. Catch Words:
- compromise, settlement, quashing, acquittal, Section 138, Negotiable Instruments Act
3. Summary:
The petitioner filed an application (I.A.No.1 of 2026) with a joint compromise memo seeking to settle a criminal case under Section 138 of the Negotiable Instruments Act. Both parties agreed to withdraw the complaint and requested the court to quash the pending proceedings. The court referred to Supreme Court precedents allowing compromise even at appeal or revision stages, noting that penalty need not be collected when settlement is effected. After considering the facts and the cited jurisprudence, the court permitted the compromise. Consequently, the petition was allowed, the criminal proceedings were quashed, and the petitioner was acquitted of the offence. No costs were awarded, and the order was to be communicated to the trial court.
4. Conclusion:
Petition Allowed |
| Judgment :- |
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1. Heard Sri S. S. Bhatt, learned counsel for the petitioner, Sri C. Prakash Reddy, learned counsel for the respondent No.1 and learned Assistant Public Prosecutor appearing for respondent No.2.
2. Petitioner and respondent No.1 who are accused and complainant before the trial Court in C.C.No.250 of 2022 are also present and heard them.
3. Learned counsel for the petitioner filed a petition in I.A.No.1 of 2026 along with joint compromise memo, seeking permission to settle the matter and acquit the petitioner under Section 138 of Negotiable Instruments Act (hereinafter referred to as ‘the Act’) by quashing the proceedings in C.C.No.250 of 2022. As seen from the joint compromise memo, both parties settled their issues, out of Court and accordingly, respondent No.1 agreed to withdraw the complaint in C.C.No.250 of 2022 and he orally submitted that this petition may be allowed by quashing the proceedings in C.C.No.250 of 2022 and by acquitting the petitioner of the offence of the Act.
4. In this regard, it is to be noted that as per the Judgment of Hon’ble Apex Court in Damodar S Prabhu v. Sayed Babalal ([(2010) 5 SCC 663]), even at the stage of appeal or revision, the case under Section 138 of the Act can be compromised and to that effect permission may be given to both parties and at the same time, depending on the stage of the case, penalty amount is to be collected from the accused. But, as per the judgment of Hon’ble Apex Court in Rajeev Khandelwal vs. State of Maharashtra & Another ([2025 LiveLaw SC 1103]), penalty amount need not be collected from the accused, in view of the settlement between the parties and payment made by the accused.
5. In the given facts and circumstances and having given thoughtful consideration to the aforementioned principles, this Court came to conclusion that permission may be accorded to both parties to settle the dispute and accordingly, this Court allowed the petition in I.A.No.1 of 2026 vide orders today.
6. In the result, this Criminal Petition is allowed, by quashing the proceedings in C.C.No.250 of 2022 pending on the file of the learned Judicial Magistrate of First Class, Kamalapuram, Kadapa District and consequently, acquitted the petitioner of the offence under Section 138 of the Act. There shall be no order as to costs.
7. Registry is directed to communicate the copy of this order to the trial Court forthwith and also serve a copy on the learned counsel on record, within one week.
As a sequel, Miscellaneous petitions, if any pending, shall stand closed.
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